Featured Product

    CBUAE Issues Guidelines on Enabling Technologies, Introduces DONIA

    November 15, 2021

    The Central Bank of the United Arab Emirates (CBUAE) and the Bank Indonesia signed a memorandum of understanding (MoU) to promote cooperation in payment systems and digital financial innovation. Also, from December 07, 2021, CBUAE was expected to start publishing a new overnight index for UAE Dirham—namely, Dirham Overnight Index Average or DONIA. CBUAE expects that this index will serve as an anchor for banks in determining factors relevant to their daily fixing of interbank rates (EIBOR). CBUAE does not plan to discontinue EIBOR once DONIA is published, as DONIA and EIBOR will co-exist in the domestic markets. In yet another development, CBUAE and certain other authorities, including the Dubai Financial Services Authority (DFSA), jointly issued guidelines for financial institutions adopting enabling technologies.

    The guidelines for enabling technologies set out cross-sectoral principles and best practices for financial institutions when adopting enabling technologies for the development or offering of innovative products and services. The enabling technologies include application programming interfaces, big data analytics and artificial intelligence, biometrics, cloud computing, and distributed ledger technology. The guidelines are applicable to all Institutions licensed and supervised by the supervisory authorities that are using, or intend to use, such enabling technologies. The guidelines aim to:

    • provide Institutions with best practices on risk management in respect to enabling technologies
    • encourage the safety and soundness of Institutions so that relevant risks arising from innovative business models and services are adequately managed and mitigated
    • limit the systemic risks that could arise from the use of innovative technology, thus fostering transparency and financial stability
    • provide guidance on how to manage the risks when adopting enabling technologies to deliver more efficient, secure, and robust solutions to customers, thus improving organizational efficiency and financial inclusion
    • promote the growth and advancement of the UAE financial services sector and encourage adoption of Innovative Activities in the UAE while managing risks in a proportionate manner

     

    Related Links

    Keywords: Middle East and Africa, UAE, Banking, Regtech, Cloud Computing, Outsourcing Arrangements, API, Big Data, Blockchain, Artificial Intelligence, Guidelines, Enabling Technologies, DONIA, EIBOR, Benchmark Reforms, Derivatives, DFSA, CBUAE

    Related Articles
    News

    EBA Clarifies Use of COVID-19-Impacted Data for IRB Credit Risk Models

    The European Banking Authority (EBA) published four draft principles to support supervisory efforts in assessing the representativeness of COVID-19-impacted data for banks using the internal ratings based (IRB) credit risk models.

    June 21, 2022 WebPage Regulatory News
    News

    EP Reaches Agreement on Corporate Sustainability Reporting Directive

    The European Council and the European Parliament (EP) reached a provisional political agreement on the Corporate Sustainability Reporting Directive (CSRD).

    June 21, 2022 WebPage Regulatory News
    News

    PRA Consults on Model Risk Management Principles for Banks

    The Prudential Regulation Authority (PRA) launched a consultation (CP6/22) that sets out proposal for a new Supervisory Statement on expectations for management of model risk by banks.

    June 21, 2022 WebPage Regulatory News
    News

    EC Regulation Amends Standards for Calculating Credit Risk Adjustments

    The European Commission (EC) published the Delegated Regulation 2022/954, which amends regulatory technical standards on specification of the calculation of specific and general credit risk adjustments.

    June 21, 2022 WebPage Regulatory News
    News

    BIS Hub Updates Work Program for 2022, Announces New Projects

    The Bank for International Settlements (BIS) Innovation Hub updated its work program, announcing a set of projects across various centers.

    June 17, 2022 WebPage Regulatory News
    News

    EIOPA Issues Cyber Underwriting Proposal, Statement on Open Insurance

    The European Insurance and Occupational Pensions Authority (EIOPA) published two consultation papers—one on the supervisory statement on exclusions related to systemic events and the other on the supervisory statement on the management of non-affirmative cyber exposures.

    June 17, 2022 WebPage Regulatory News
    News

    US Senate Members Seek Details on SEC Proposed Climate Disclosure Rule

    Certain members of the U.S. Senate Committee on Banking, Housing, and Urban Affairs issued a letter to the Securities and Exchange Commission (SEC)

    June 16, 2022 WebPage Regulatory News
    News

    EIOPA Consults on Review of Securitization Framework in Solvency II

    The European Insurance and Occupational Pensions Authority (EIOPA) published a consultation paper on the advice on the review of the securitization prudential framework in Solvency II.

    June 16, 2022 WebPage Regulatory News
    News

    UK Authorities Issue Regulatory and Reporting Updates for Banks

    The Prudential Regulation Authority (PRA) issued a statement on PRA buffer adjustment while the Bank of England (BoE) published a notice on the statistical reporting requirements for banks.

    June 15, 2022 WebPage Regulatory News
    News

    BCBS Issues Climate Risk Principles while HKMA Expresses Its Support

    The Basel Committee on Banking Supervision (BCBS) issued principles for the effective management and supervision of climate-related financial risks.

    June 15, 2022 WebPage Regulatory News
    RESULTS 1 - 10 OF 8280